Loan against property is a substitute for a personal loan. It offers the borrower a lot of benefits. It is multi-purpose has is fast processing and is cheaper than a personal loan.
Loan against property comes with numerous benefits like a simple approval process, end-use flexibility, pocket-friendly, flexible loan tenure, and flexible loan amount. Loan against property is the best option to choose as it comes with good benefits and comfort for the borrower. There is no inconvenience in opting for one, and the borrower enjoys flexible advantages under it.
Steps involved in the application process to avail a loan against property are:
But just like other loan applications, loan against property is also approved after a process. First, you have to fill a loan application with your personal details and professional details, loan requirements, details of the property intended as the mortgage, etc. You should keep in mind that you fill these details properly as it is very important.
During the processing of the loan you may have to interact personally with the loan provider, and also when the bank’s field investigation starts.
Your processing fee will be 1 to 2% of the loan amount you borrow. So when you submit the application form and your credit documents, you may have to pay this processing fee to the bank.
You might be charged an upfront fee to maintain your loan account records, sending income tax certificates every year, maintaining post-dated cheques, etc.
You should keep in mind that when you go for personal interaction with your loan provider, you need to carry the related documents mentioned in your application form.
The verification and calculation for the value of the property you provide against the loan will be done next, and your personal and business details will be examined. Keep in mind that you provide accurate and proper information.
Next comes the sanctioning of the loan. In this stage, you are verified under fields such as your income, your age, qualifications, experience, employer, nature of the business, etc. Your loan amount depends on maximum loan eligibility, and at this stage, it is finalized.
Then a sanction letter is sent to you from the bank in which you are to accept the terms and conditions put by the bank if you want to get your loan approved.
The last is the disbursement of the loan. Once the bank is done checking and ensuring that you are a reliable borrower and your property or repayment capacity has no issues, it will approve your loan. One doesn’t need to provide any specific reason for opting for a loan against property, It can be used for personal works like home renovation, education purposes, medical expenses, or any other expenses. There are no restrictions for its usage.
Along with continuous ownership loan against property provides loans at a low-interest rate. Even if you are availing the loan against your property, you can still retain the ownership of your property. You can get a loan against a residential property, no matter what your salary is.